The stock market finally looked ready to take a break on Monday, as major market benchmarks fell after posting strong gains last week. As of just after noon ET, the Nasdaq Composite (^IXIC 0.10%) led the market lower, falling about 1.25%.
However, there were some big winners among Nasdaq stocks even on a tough day for the broader market. SoFi Technologies (SOFI 0.26%) and Alliance Resource Partners (ARLP -0.05%) operate in very different parts of the economy, but both stocks got nice gains after reporting encouraging financial results. Read on for more details and how both companies could continue to reward their shareholders.
SoFi sees profits ahead
Shares of SoFi Technologies rose 16% at midday on Monday. The up-and-coming financial services provider reported fourth-quarter results that showed its ongoing progress toward eventual profitability.
SoFi reported fourth-quarter revenue of $457 million, which was up 60% from the year-ago quarter. The company did continue to lose money, but losses of $40 million were 64% smaller than in the fourth quarter of 2021. Moreover, on an adjusted basis, pre-tax operating earnings soared to $70 million, up from $4.6 million year over year.
SoFi continues to attract members. The financial services provider added 480,000 new members in the past three months to reach the 5.2 million mark, up by more than half from its customer count 12 months earlier. Total deposits at the banking unit were up 46% from three months earlier, and the vast majority of SoFi's deposits come from members who have direct-deposit arrangements set up with the bank.
Best of all, SoFi said it expects good results in the future. First-quarter revenue should rise 34% to 37% year over year to between $430 million and $440 million, with full-year sales in 2023 seen climbing to as much as $2 billion. The company sees itself making money by the fourth quarter of this year, and that has become of paramount importance for investors across the stock market.
Alliance heats up
Elsewhere, shares of Alliance Resource Partners climbed just over 10% on Monday. The thermal coal specialist reported exceptional results in its fourth quarter, boosting its distributions and expecting a strong 2023.
Alliance's fourth-quarter financial results were extraordinary. Revenue of $701 million climbed 48% year over year, while net income of $214 million more than quadrupled from year-ago levels. The company reported record sales of $2.4 billion for the full 2022 year, with both coal operations and royalty interests contributing to strong performance.
Shareholders are also getting direct rewards from Alliance's gains. The company's first-quarter cash distribution will be $0.70 per unit, up from $0.50 last quarter and $0.25 a year ago. Alliance is also boosting its buyback program, authorizing another $100 million, or more than 3% of its outstanding equity value.
It's unclear whether the coal market will continue to cooperate with investors in Alliance Resource Partners, given that many market participants had written off the industry entirely as years of rock-bottom prices seemed to spell the end for the coal industry. Now, though, shareholders are getting the benefit of rich dividend distributions as well as solid share-price appreciation.
With China's economy looking poised to reopen and the potential continuation of energy market disruptions due to Russia's invasion of Ukraine, Alliance has high hopes for strong coal prices throughout 2023. Even if cost pressures from higher labor rates and sales-related expenses weigh on profits to some extent, Alliance is optimistic that the market will stay strong enough for coal sales proceeds to more than make up for any margin pressure.
